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Term

Decreasing Term Level premiums and decreasing death benefit. No cash accumulation. Frequently used for short-term decreasing financial liabilities, like a mortgage, which decreases over time.

Annual Renewable Term Increasing premiums with level death benefit. No cash accumulation. The strength of term is its low cost for large death benefits, particularly beneficial to younger families with limited resources and the need for maximum protection. Level Term Premiums stay level for stated term, usually 5, 10, 15 or 20 years. Level death benefit. No cash value. The need? Frequently used to cover short or intermediate term obligations. One reason for recent popularity is that level premiums promote budgeting of known cost in the future.